VietJet announces potential $300 million bond offer in 2021
VietJet presented its 2020 audit report and 2021 development plan in which the airline revealed its intent on a $300 million international bond offering.
During an annual general meeting, the airline’s shareholders approved a plan to raise a maximum of 15% of the share capital through private placement of shares, and an international bond offering which will be considered in 2021 or 2022. As of December 31, 2019, VietJet’s share capital was recorded at VND5,416 trillion ($235 million).
The airline’s shareholders have approved the issuance of 10 million shares as part of an employee stock ownership plan. The Board of Directors also approved the allocation of a 25% stock dividend towards financial resources for VietJet’s air transport business.
Based in Ho Chi Minh City, VietJet is one of the few airlines around the world to turn a profit in 2020. In a press statement released on June 29, 2021, the airline’s parent company’s 2020 audit report recorded a consolidated revenue of VND18,220 billion ($788.3 million) and a consolidated profit reaching VND68 billion ($2.9 million), despite a loss of VND1,453 billion ($62.6 million).
In 2020, VietJet opened eight new domestic routes and flew an estimate of 79,000 flights with an average load factor of over 80%. The carrier approximately flew over 15 million passengers.
For 2021, VietJet targets to achieve a 20% year-on-year growth with a consolidated revenue of VND21,900 billion ($945.1 million). The carrier expects the growth of its cargo revenues to be the main driver to reach these targets as well as support from financial investments, new services in air transport, and personnel training and aircraft maintenance.
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